xvidcap for recording. Istanbul and RecordMyDesktop are other options, although they didn't work well for me, and they don't produce mpeg (needed for uploading to youtube).

Note: After upgrading to Ubuntu/Hardy beta I had a lot of problems with dropped frames (about 50% of them!). After much experimenting with scaling govenerors and the ionice command, the only solution that worked was to use sudo taskset -p 0x01 `pidof xvidcap` to force it to stay on a single processor.

Editing software?

Kdenlive looked good, but crashes every 30 seconds or so. In the end I used Avidemux, which only crashes while saving the final video. Create a project and save before rendering the final video!